CA.

Ankita Jain

Question 1: Sunaina, a minor, falsely representing her age, enters into an agreement with an
authorised Laptop dealer Mr. Reddy, owner of SP Laptops, for purchase of Laptop on credit amounting
Rs. 60,000/- for purchasing a laptop, on 1st August 2021. She promised to pay back the outstanding
amount with interest @ 16% p.a. by 31st July 2022. She told him that in case she won’t be able to pay
the outstanding amount, her father Mr. Ram will pay back on her behalf. After One year, when Sunaina
was asked to pay the outstanding amount with interest she refused to pay the amount and told the
owner that she is minor and now he can't recover a single penny from her.
She will be adult on 1st January 2024, only after that agreement can be ratified. Explain by which of
the following way Mr. Reddy will succeed in recovering the outstanding amount with reference to the
Indian Contract Act, 1872.
(i) By filing a case against Sunaina, a minor for recovery of outstanding amount with interest?
(ii) By filing a case against Mr. Ram, father of Sunaina for recovery of outstanding amount?
(iii) By filing a case against Sunaina, a minor for recovery of outstanding amount after she attains
maturity?

Question 2: Explain the modes of revocation of an offer as per the Indian Contract Act, 1872.

Question 3: Mr. Ramlal, an old man, by a registered deed of gift, granted certain landed property to
Ms. Reema, his daughter. By the terms of the deed, it was stipulated that an annuity of Rs. 20, 000
should be paid every year to Mr. Sawant, who was the brother of Mr. Ramlal. On the same day Ms.
Reema made a promise to Mr. Sawant and executed in his favour an agreement to give effect to the
stipulation. Ms. Reema failed to pay the stipulated sum. In an action against her by Mr. Sawant, she
contended that since Mr. Sawant had not furnished any consideration, he has no right of action.
Examining the provisions of the Indian Contract Act, 1872, decide, whether the contention of Ms.
Reema is valid?

Question 4
(i) "Agreements made out of love and affection are valid agreements." Comment
(ii) Mr. Y has given loan to Mr. G of Rs. 30,00,000. Mr. G defaulted the loan on due date and debt
became time barred. After the time barred debt, Mr. G agreed to settle the full amount to Mr. Y.
Whether acceptance of time barred debt contract is enforceable in law?

Question 5: “No consideration, no contract”. Discuss.

Question 6: Mr. Rocky is a learned advocate. His car was stolen from his house. He gave an
advertisement in newspaper that he will give the reward of Rs. 10,000 who will give the information
about his car. Mr. Vikram reads the advertisement and on making some efforts got the stolen car and
informed Mr. Rocky. Mr. Rocky found his car but denied giving reward of Rs. 10,000 to Mr. Vikram with
the words, “An advertisement in newspaper is just an invitation to make offer and not an offer. Hence,
he is not liable to make the reward.” State with reasons whether under Indian Contract Act, 1872, Mr.
Vikram can claim the reward of Rs. 10,000.

Law Test 1 – Contract Act Unit 1-4 Page 1.1